1. Focus on Economic Growth Catherine Smith Commissioner September 10, 2015

2. 74,200 new jobs created since 2011 Budget growth rate has been 3.1% per year State employee headcount has been reduced 4.4% over past 5 years 8.1% decline in long-term obligations of the State Regulations reduced by 1,000 pages 2nd lowest effective corporate tax rate in the U.S.* *Source: Ernest & Young 2 State of the State *Source: Ernest & Young

3. 3 A Highly Skilled Workforce Sources: U.S. Census Bureau; Educational Attainment by State 2013; U.S. Bureau of Economic Analysis, 2012

4. 4 Sources: US Census Bureau and US Bureau of Economic Analysis, 2013; Information Technology and Innovation Foundation, new Economy Index, 2014; US Patent and Trademark Office, 2013; Brookings Institute; Calculations by CERC A Center of Innovation

5. CT boasts over 42 colleges and universities, ranging from Ivy League to community colleges to world-class research institutions turning out highly educated workers and entrepreneurs 5 Source: U.S. News and World Report, 2014 The State of Connecticut is investing significantly in education World-Class Education Institutions

6. 6 Sources: Forbes Magazine, 2014, American Human Development Index 2013-2014 #3 ranking last year overall for quality of life due to low crime and poverty rates, a healthy populous and strong schools CT ranks #1 as the healthiest state in the country An Unparalleled Quality of Life

7. Our Updated Economic Strategy 7  Build on our strengths (talent, “anchors” location)  Focus on key business sectors for business development  Tailor programs to address greatest needs  Simplify governmental processes/regulation  Collaborate with key partners (energy, education, transportation)  Drive for innovation

8. Economic Strategic Framework 8 Motivate & engage our employees & partners Build a brand for the state that drives economic growth Build vibrant neighborhoods & communities Grow & enrich our talent pool Foster innovation & new business development Retain & grow existing base of jobs Build on established strengths and emerging sectors

9. Our Focus on Business Clusters 9 Key Strengths to Build Upon:  Healthcare / Life Sciences  Advanced Manufacturing  Insurance / Financial Services  Tourism Emerging Opportunities:  Digital Media/IT  Green Technology

10. Building Strategies in the Six Key Clusters 10 Bioscience Advanced Manufacturing Insurance/ Financial Services Green Technology Digital Media Tourism

11.  Finance and insurance accounts for 14.4% 1 of state’s economy, and ranks 3 rd among states for share of employment 2  Fairfield county: Hedge fund capital of the world –Financial centers in Stamford and Greenwich Hartford: Insurance capital of the world –Connecticut is home to hundreds of financial institutions: UBS, RBS, GE Money, ING, Hartford Financial Services, Prudential and more  Ideal location for companies that want to be near New York city but without New York city costs Financial Services 11 Source: 1 BEA, 2014 2 Connecticut Economic Review, 2015

12. Advanced Manufacturing/Aerospace  More than 4,500 diverse manufacturing companies in Connecticut employ over 159,607 private sector employees 1  Total state manufacturing output was $27 billion in 2014 2  95% of Connecticut’s $16 billion in exports are from the manufacturing sector 3  Foreign-based investment in Connecticut results in thousands of jobs for state employees 12 Sources: 1 BEA, June 2015 2 BEA, June 2015 3 National Association of Manufacturers, Connecticut Manufacturing Facts, 2014

13. Connecticut is Supporting Manufacturers  UTC commitment to Connecticut helps hundreds of supply chain companies  Manufacturing Innovation Fund Assists smaller manufacturers in making innovative and strategic investments Focuses on talent development to meet the growth expectations in aerospace and medical devices 13

14. Healthcare/Bioscience  A total of 917 private companies in the state 1  Average annual wage is 50% higher than statewide average 2  Ranked 3 rd in U.S. with 16.6% of population having advanced degrees 3  Ranked 5 th in U.S. for scientists and engineers with 651 per 100,000 employees having advanced degrees 4  4 th in the nation for bioscience patents per capita 5 14 Sources: 1 Bureau of Labor Statistics, 2014 2 Bureau of Labor Statistics 3 Connecticut Economic Review, 2015 4 Connecticut Economic Review, 2015 5 Connecticut Economic Review, 2015

15. Bioscience Connecticut Jackson Laboratory President and CEO Edison T. Liu, M.D. “We’re building one of the most innovative and forward-thinking genomics programs in the country, because we’re starting from scratch.” – Edison T. Liu 15

16. A Comprehensive Approach 16 STE(A)M Education A Comprehensive Energy Plan A Transportation Strategy Fostering Business Growth

17. Tax Incentives Tax Incentives Credits Abatements Technical Assistance Expertise Research Work with partners Financing Loans Forgivable Loans Grants DECD Toolbox

18. Small Business Express Program Supports the retention and growth of small business with a combination of loans and grants 18  Matching grants of up to $100,000 or loans/forgivable loans in amounts up to $300,000  To date, 1,414 companies have been provided more than $214 million in financial assistance  Companies promise to create 5,421 jobs and retain 15,371  20% are manufacturers – 283 companies will create 1,356 and retain 5,233 jobs (about double the expected state average)

19.  83 companies in 40 different municipalities in the state’s largest urban centers, suburban towns, and small rural communities  12,495 jobs retained and 4,330 to be created  $203M in total state assistance leveraging $576M  37 manufacturing (45%) and 12 financial service (14%) companies were funded, all in our targeted business growth sectors Manufacturing Assistance Act (MAA) Incentive-driven loans, grants for mid-sized companies growing jobs and building their businesses in CT 19 Since 2011 DECD has been assisting mid-sized companies:

20.  13 projects across several targeted clusters including Insurance/Financial Services, Healthcare/Biotech and Digital Media  13,526 jobs to be retained; 2,600 to 5,264 jobs to be created  Over $256M in direct state assistance leveraging $1.3B in private investment  Diversity of geographic locations including Bloomfield, Bristol, Hartford, New Haven and Stamford First Five Program For larger companies that create 200 jobs within 2 years or invest $25M and create 200 jobs within 5 years 20

21. Manufacturing Innovation Fund  Focused on talent development  Advisory board, made up of industry leaders, sets agenda  New programs: –Voucher program has approved 130 applications for $ $4,646,306 –Incumbent worker training up and running –Apprenticeship program in the works Assists manufacturers to make innovative, strategic investments needed to remain competitive, win new contracts, and grow jobs 21

22. High-impact services include:  Support for Brownfield remediation  Support for Transit-Oriented Development  Regulatory and permitting assistance  Site selection assistance  Trade missions and shows  Introductions to key businesses and institutions The State Can Support Businesses In A Variety Of Other Ways 22

23. Business Ambassador Program  DECD staff will proactively reach out to CT businesses: - To foster retention and growth strategies for businesses, jobs - To promote assistance programs - To help evaluate capital investment opportunities - Identify businesses at risk of leaving or expanding out of state  Targeted industries include those in the strategic plan  Regional representation  Ease of contact/communication 23

24. Connecticut is poised for strong growth:  Strong base of businesses and institutions  Well-educated and productive workforce  Vibrant, livable communities with convenient access to East Coast hubs  Focused on making it easy for companies to grow Conclusion 24

25. DECD 505 Hudson Street Hartford, CT 06106 (860) 270-8000 www.decd.org 25 PRODUCTIVELOCALEDUCATEDESTABLISHEDHISTORICCULTURAL